Banca Ifis SPA (IF) AI Stock Analysis

• Market Cap: €1.39B
• Dividend Yield: 9.18%
• Average Volume (3M): 158.35K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.91
• Revenue Growth: -3.63%
• EPS Growth: -5.12%
• Country: IT
• Employees: 2,013
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 1.65
• Shares Outstanding: 61,486,526
• 10 Day Avg. Volume: 125,712
• 30 Day Avg. Volume: 158,348
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €25.25
• Price Target Upside: 9.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: €25.00 ▲(8.23% Upside)

Banca Ifis SPA's overall stock score is driven by strong valuation metrics, with a low P/E ratio and high dividend yield making it attractive. However, financial performance concerns, particularly negative cash flow trends and increased leverage, weigh down the score. Technical indicators suggest a lack of strong momentum, adding to the cautious outlook.

Positive Factors

Dividend Policy

An attractive dividend is a strong part of the equity story, and will continue to be, as the dividend policy is confirmed, leading to a dividend yield of ca. 10%.

Earnings

Banca IFIS 2Q25 results came in above consensus expectations, thanks to higher-than-expected trading income.

Merger Benefits

The transaction makes industrial sense as it reinforces Banca IFIS’ positioning in core activities and is double-digit EPS accretive, while allowing to keep a solid capital base and a generous DPS.

Negative Factors

Integration Risks

Integration challenges could erode expertise, present IT migration hurdles, and cause employment issues tied to integration costs and expected HR synergies.

Merger Challenges

It would be difficult for Banca IFIS to reach the acceptance threshold of 66.7%, control the extraordinary shareholders meeting and merge the two companies, which would put at stake the success of the offer.

Shareholder Opposition

The opposition from a group of illimity shareholders with a 27% stake in a consultation pact may prevent Banca IFIS from proceeding with the merger, limiting the synergies’ potential and putting at stake the success of the offer.

Banca Ifis SPA Business Overview & Revenue Model

Company Description

Banca Ifis SPA is an Italian banking institution specializing in providing financial services primarily to small and medium-sized enterprises (SMEs). Established in 1983, the bank operates in several sectors, including factoring, lending, and financial services for healthcare. Its core products include factoring solutions, which allow businesses to improve their cash flow by selling their receivables, as well as various financing options tailored to the needs of SMEs and healthcare providers.

How the Company Makes Money

Banca Ifis generates revenue primarily through its factoring and lending services. The company's main revenue streams include interest income from loans and financing products, fees from factoring services, and commissions from various financial advisory services. Additionally, Banca Ifis has a significant presence in the healthcare financing sector, providing specialized loans and services to healthcare providers, which enhances its earnings. The bank also benefits from strategic partnerships with other financial institutions and businesses, allowing it to expand its service offerings and customer base. Overall, Banca Ifis's focus on SMEs and the healthcare sector positions it well for sustained revenue growth.

Banca Ifis SPA Financial Statement Overview

Summary

Banca Ifis SPA shows stable revenue growth and strong profit margins. However, increasing leverage and negative cash flow trends pose financial risks. The company needs to improve cash flow generation and manage debt levels to maintain financial health.

Income Statement

Banca Ifis SPA has demonstrated consistent revenue growth from €489M in 2020 to €661M in 2024, indicating a stable upward trend. The gross profit margin has remained strong at 100% due to the nature of banking operations. EBIT margins have been stable, maintaining around 40%, which reflects efficient operational management. However, the absence of EBITDA data for 2024 limits further analysis on operating profitability.

Balance Sheet

The company's debt-to-equity ratio increased from 1.44 in 2020 to 2.23 in 2024, indicating higher leverage which could pose financial risks. The equity ratio has slightly declined, suggesting decreasing asset financing by equity. Despite these concerns, return on equity has improved from 4.52% in 2020 to 9.33% in 2024, showing enhanced profitability relative to shareholder equity.

Cash Flow

The free cash flow has shown volatility, with a significant drop to a negative figure in 2024. Operating cash flow was also negative in 2024, which presents a potential liquidity concern. The free cash flow to net income ratio turned negative, indicating inefficiencies in converting earnings into cash flow. This could be a risk if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	600.27M	661.89M	598.84M	569.49M	507.47M	489.00M
Gross Profit	600.27M	607.08M	650.18M	569.49M	507.47M	489.00M
EBITDA	189.56M	268.60M	255.26M	228.71M	168.61M	109.69M
Net Income	161.69M	161.58M	160.11M	141.09M	100.58M	68.80M
Balance Sheet
Total Assets	13.58B	13.83B	14.05B	13.26B	12.98B	12.03B
Cash, Cash Equivalents and Short-Term Investments	385.66M	505.02M	883.83M	610.36M	708.57M	986.58M
Total Debt	3.09B	3.87B	6.38B	2.74B	2.62B	2.20B
Total Liabilities	11.78B	12.08B	12.36B	11.66B	11.35B	10.48B
Stockholders Equity	1.78B	1.73B	1.68B	1.59B	1.60B	1.52B
Cash Flow
Free Cash Flow	68.89M	-223.72M	400.73M	382.38M	52.79M	158.29M
Operating Cash Flow	91.59M	-191.52M	445.41M	399.95M	73.42M	205.30M
Investing Cash Flow	0.00	-50.66M	-105.85M	-17.51M	73.54M	10.32M
Financing Cash Flow	0.00	-110.34M	-85.16M	-134.69M	-83.18M	-5.00K

Banca Ifis SPA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IF, the sentiment is Neutral. The current price of 23.1 is above the 20-day moving average (MA) of 22.84, below the 50-day MA of 23.15, and above the 200-day MA of 21.41, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 21.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:IF.

Banca Ifis SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.89B	11.95	10.28%	3.72%	9.74%	1.61%
IF	68 Neutral	€1.39B	7.86	8.85%	9.18%	-3.63%	-5.12%
0FP9	―	€108.91M	23.13	3.00%	―	―	―
0O5V	―	€984.88M	8.26	8.29%	―	―	―
0K93	―	€4.57B	6.88	15.88%	―	―	―
1DB0	―	€527.05M	7.68	-13.55%	―	―	―
53D	―	€336.05M	4.84	-22.88%	―	―	―